6 Stocks That Could Make Or Break The S&P’s Record Run

These 6 stocks are valued at a combined $4.2 trillion and that could mean trouble for the index.

Retire in 18 months with $2.4 million?

37 year old trader uses this “unconventional” strategy to turn $10K into $2.4 million in only 18 months. Another trader turned $5K into $15 million and still another turned $30K into $80 million. Click here to discover their millionaire maker strategy. [ad]

Read More


MAAGFB doesn’t have quite the same ring to it as FAANG does, but the companies of this acronym could have far more sway over the market.

Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Google-parent Alphabet (NASDAQ: GOOGL, GOOG), Facebook (NASDAQ: FB), and Berkshire Hathaway (NYSE: BRK.A, BRK.B) are the most highly valued companies in the S&P 500.

Together, they are worth nearly as much the bottom 290 companies in the index combined, with their market caps totaling $4.2 trillion compared to the bottom 290’s combined value of around $4.3 trillion. 

According to Cornerstone Macro chief market technician Carter Worth, it’s not that unusual for the market to be this “top heavy.” However, the concentration with these six names is of note, according to Worth, as they have considerable influence on the broader index’s direction.

“Is it an index, or is it a few big names that drive everything?” Worth questioned in an interview with CNBC on Tuesday. “That’s what makes beating the index so hard.”

Worth compared the six MAAGFB stocks against the basket’s 150-day moving average, as well as the number of times the basket has traded at or below that average.

Source: CNBC.

“Literally, every single time we have gotten this far above the 150-day moving average, we have peaked. It is right at that level yet again,” Worth said, noting the uptick in the trend line in the bottom panel of the chart above. “So, as this goes, so goes the market.”

“I think you’ve got a crowding that’s not so good. Just to put it in real context, think of those six names relative to the S&P. It’s all so dependent on these big names,” Worth said. 

While “heavy hitters” have made up 15% of the S&P’s total market cap, on average, since the 1990s, the percentage is also starting to tick up.

“We’re starting to get back to a level that is typically indicative of when markets peak. That’s ’07, so forth and so on,” Worth warned. “None of this is particularly healthy.”

Right now, Microsoft is at the top of the pack in terms of market cap with a value of $961.8 billion. Amazon and Apple following closely behind at $943 billion and $934 billion, respectively. Google, with a market cap of $811 billion, Facebook with its $541 billion, and Berkshire Hathaway, at $515 billion, round out the group. 

The market has been spooked this week as investors worry about the renewed trade stand-off between the U.S. and China. The S&P 500 was little changed Wednesday, closing the day down just -0.16% to 2,879.42, while the Dow finished the day up 2.24 points to 25,967.33 and the Nasdaq closed down -0/26% to 7,943.32.

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.